Seoul sees 83% jump in property gifts as owners avoid taxes

A significant surge in real estate gifts has been observed in Seoul during the first half of 2023, with a notable 83% increase compared to the same period last year. This trend points to a strategic move by property owners to transfer their assets ahead of the property tax assessment.

Property taxes are calculated based on ownership status as of June 30th. With rising official property values, many owners are opting to gift their properties to family members before the new tax rates, potentially higher due to increased valuations, come into effect. This preemptive gifting strategy aims to mitigate future tax burdens.

Data analysis reveals that across all 25 districts in Seoul, the number of property ownership transfer registrations due to gifts has climbed. Seocho district recorded the highest number of such transfers, followed by Gangnam and Songpa districts. Other areas like Dongjak and Yongsan also experienced substantial growth in gift-related property transactions, underscoring a city-wide pattern of tax-driven asset reallocation.